Last Updated 22 Jun 2021

Business person and expatriates

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Businesses have changed, and so the markets. The markets in which we operate today are totally different in many aspects from that of the past. The revolution caused by the coming of dot com bubble and increased technological awareness has caused a globalization effect over almost all the countries around the world. The methods of conducting business, way of travelling, living, and of course the life styles have changed a lot and are directed towards the modern, fast-moving era.

Therefore, organizations are flourishing in the local markets and are getting opportunities to operate globally too; hence they expand their businesses across many different countries to gain more market share and profits. Expanding the business is not an easy task that happens in just one night; in fact, many concerns arouse when entering the market and operating there. Those concerns must be scrutinized and evaluated in-depth by the organizations or the business personnel who want to operate or work in different environmental and business conditions of other countries.

Among those factors, PEST Analysis must be conducted deeply – political, economical, sociological, and technological analysis. Moreover, the rules, regulations, policies, and ways of conducting business must properly be understood in order to avoid unwanted circumstances that might occur due to their violation. The paper would discuss all the relevant and decisive factors that need to be understood and remembered by the business personnel or expatriates who want to work in Japan. This would clarify the whole picture for them regarding the rules, laws, policies, conditions and other factors.

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Let’s discuss all those significant factors in detail. Factors to be Considered Starting from the geography of the country, Japan has numerous small islands, and its close neighbors include Korea and two strong, powerful countries – Russia and China. These countries are not only vast in their geographical area, but possess sound economy and trading system. Although Japan is not that big but it of almost the same size as that of Germany; moreover, the country has a total population of around 125 million. Since the country has many mountainous regions and volcanoes; therefore, the country is often hit by the earthquakes and floods.

Simply put, the country’s description tells that it is an economically and politically stable country where tourism facilities are at their best. Safety and Security The country is free from terrorism to a great extent because no massive terrorist attack has happened there so far after 1995. Japan’s government is quite stiff in this matter and preserves high check over the security concerns and orders the concerned authorities to take precautionary measures. Talking about the crimes that take place almost everywhere these days, Japan faces crimes such as, theft, vandalism, and sometimes sexual assaults.

No major crimes are occurred here, since the crime rate of Japan is quite less than that of the United States.

Drugs Usage and Penalties

One unusual crime that is often heard to be committed in Japan is of pick pocketing of people, especially foreigners or tourists, who end up losing their passports, credit cards, or cash. As far as the illegal drugs are concerned, crimes are done in a way that people make use of drugs in the night clubs or bars where they also mix those drugs in the drinks and make others drink it so that they might abduct them or steal something from them.

Nevertheless, the penalties are severe – even for minor amount of drug caught – and the criminals might be held in detention for several months. Living Conditions & Expenses Although the value of Japanese currency is dramatically lower as compared to the US dollar; nevertheless, Japan is one of the expensive place to live in. Moreover, Tokyo is the world’s most expensive city which is followed by Moscow of Russia.

Living and traveling expenses are also high along with the taxi fares that can cost to around 100 dollars; where as bus fare range around 30 to 40 US$. Medical Facilities and Health Requirements Japan has a sound medical care system employed throughout the country where several physicians and medical staff are working in different health insurance systems and hospitals. Foreigners are entertained in the separate care-giving institutions; nevertheless, the insurance schemes can cost too much for them.

Japanese Culture

Japan’s culture is found to be one of the interesting ones that have richness at its best.

Its culture includes Geisha and Samurai, who are the famous entertainers and old warriors of the country, respectively. Moreover, clothing is both cultural and western; people opt both the western style and ‘Kimono’ which is a famous traditional dress of the country. Festivals are held based on their old traditions and customs; furthermore, there are several traditional sites including temples, castles, and other heritage sites. Fashion and beauty competitions are held that are named as Yukata.

Political and Economic System Japan is no doubt a democratic country, but this is not the same kind of democratic system as that of other countries such as, France and Germany. In this form of government system, one party plays a dominant role that is Liberal Democratic Party, where Prime Minister is the head of the state. Economic system changed with the passage of time and even got better. Initially, Japan was an agricultural country where farmers and fishermen used to play a vital role towards the economic health of the country.

After that, industrial boom came where the focus was on the textile manufacturing, steel manufacturing, and shipbuilding. But now, the economic system is highly favorable for the foreign businessmen and expatriates, since it is of information technology age where new inventions and developments whether they are related to engineering or technological fields are being done.


The idea is clear here. There is a great opportunity for the foreign businessmen and expatriates to come and experience and work in the new environment where the chances of prospering are sound.

People, before coming to Japan, must consider the cultural values, beliefs, norms, language, customs, laws, policies, in depth, since it allows them to have a better understanding of the country’s context in which they want to operate (coursesmart. com, 2010). Not only this, sense of self and space, dress codes, food and eating habits, verbal and non-verbal behavior, and most importantly, organizational policies and culture must be understood and taken care of.


  1. Tatum. R. (n. d). Japan’s Economic System. Retrieved on July 20, 2010. From http://www. csudh. edu/global_options/375Students-Sp96/Japan2/EconSys. html
  2. Darlington. R. (2010). A short guide to the Japanese Political System. Retrieved on July 20, 2010. From http://rogerdarlington. me. uk/Japanesepoliticalsystem. html
  3. Japanese Lifestyle. (2010). Japanese Culture. Retrieved on July 20, 2010. From http://www. japaneselifestyle. com. au/culture/culture. html
  4. Travel State Gov. (2010). Japan – Country Specific Information. Retrieved on July 20, 2010. From http://travel. state. gov/travel/cis_pa_tw/cis/cis_1148. html

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